Federal Loan Programs
Federal Perkins Loan
This is a low-interest subsidized loan for both undergraduate and graduate students with exceptional financial need. Your school is your lender and may have additional eligibility criteria. The annual maximum you can borrow as an undergraduate is $4000 ($6000 for graduate level) but it may be limited by your need, other aid awarded, the date of your application and other school-specific criteria. Interest is paid by the government while you are in school and during the grace period. Repayment is deferred until nine months after you cease to be enrolled at least half time.
Federal Stafford/Direct Loans
There are two types of this loan—Subsidized and Unsubsidized.Both are available for undergraduate and graduate study.The lender is either a private lending institution that you choose, or the Dept. ofEducation, depending on which program your school participates.The Subsidized loan requires that you show financial need; the Unsubsidized loan does not.Borrowing limits are listed below.Interest is paid by the government while you are in school and during the grace period for the Subsidized loan only.Interest on the Unsubsidized loan is charged to the borrower but can be deferred with the principal.Repayment is deferred until six months after you cease to be enrolled at least half time. Total borrowing cannot exceed $23,000 for dependent undergraduates, $46,000 for independent undergraduates, and $138,500 for graduate level borrowers.
| Annual borrowing limits are as follows: | |||
| Dep. & Indpt/Subsid. | Dep./Unsubsid. | Indpt/Unsubsid. | |
| Grade 1: | 2,625 | 2,625 * | 6,625 * |
| Grade 2: | 3,500 | 3,500 * | 7,500 * |
| Grade 3, 4, 5 | 5,500 | 5,500 * | 10,500 * |
| Graduate: | 8,500 | (N/A) | 18,500 * |
| *Minus subsidized loan awarded | |||
NOTE: These amounts may be less at some institutions as required by loan program regulations but cannot exceed the amounts listed.
Federal PLUS/Direct PLUS Loan
PLUS is an interest-bearing loan for credit-worthy parents of dependent students only.The lender is either a private lending institution that you choose or the Dept. ofEducation, depending on which program your school participates.The annual maximum is the cost to attend a specific institution minus all other aid received (so will vary by institution).There is no maximum total loan limit.Repayment begins within sixty days after the loan is fully disbursed and is the responsibility of the parent, not the student.